Investors are closing out 2024 with one idea in mind: How to make 2025 a better fiscal year. Working toward this goal starts with having the right components in a portfolio, some of which are more evident than ever today. Both Wall Street and economic forces are aligned with the energy sector moving into 2025, giving investors a chance to outperform the market this year.
Energy transfer today
Energy transfer
- 52 week range
- $13.79
▼
$21.45
- Dividend yield
- 6.12%
- P/E ratio.
- 15.49
- Target price
- $20.82
With that in mind, investors need to start by understanding that analysts at Goldman Sachs have put a positive outlook on oil prices for this year, which investors can find inside the bank. 2025 Macro Forecast Report. What’s more, other market players have also begun to express their bullish views on oil prices in recent months, showing the rest of the market how much money is in this space.
That’s why there are some shifts this month in stocks LP power transfer New York: You don’tmaking it one of the top energy picks for investors to consider as a potential purchase for the coming quarter. Before discussing the details behind this potential purchase, investors need to have a macro checklist handy so they can justify the details behind the energy transportation stock’s momentum.
Bigger powers support oil blocs
After a few quarters, Warren Buffett decided to accumulate up to 29% of… Occidental Petroleum Co. NYSE: Oxy In his own version of a bullish bet on oil to come out ahead in 2025. Recent CNBC interview.
If that wasn’t enough, even hedge funds, in general, have been quietly building positions in oil futures as their own way of betting on the rally. Now, one of the main catalysts for this oil boom is the potential expansion of US manufacturing activity, which appears to be at the top of the new administration’s agenda.
What’s more, China (which accounts for more than 40% of global oil demand) has reported three straight months of manufacturing expansion. Seeing the world’s two largest economies boost their activity is a surefire way to potentially bounce back into higher oil demand.
But, of all the players in the space, investors may wonder why energy transportation deserves their attention at all. This is where taking a few market authorities – and participants – comes in handy when developing a potential buy thesis.
The market takes energy transmission
If price action is any indication of sentiment, investors can safely assume that the market is favoring energy transportation stocks at the moment, as it has managed to trade up to 98% off its 52-week high. More than that, the thesis and momentum behind Energy has pushed other forces to work in favor of this company as well.
Energy Transmission LP (ET) price chart for Friday, January 24, 24, 2025
Such a theme could be replicated by recent institutional buying activity. As of January 2025, those at Cushing Asset Management LP have decided to boost their stakes in the energy transmission stock by up to 4.0%, which may not sound like much on a percentage basis, but it brings their net position to $148.6 million today.
To count as another sign of potential bullishness in stocks moving forward this upside potential.
Then comes one of the major benefits that Energy Transfer offers to its shareholders. Given the fundamental tailwinds in the industry, management justified paying up to $1.29 per share in dividends, which at today’s prices translates into an annual dividend yield of up to 6.2%.
This way, investors can still generate cash flow and liquidity when holding energy transmission stocks. At the same time, they are waiting for these upward developments to begin. What’s even better for investors is the current valuation multiples seen in the stock.
Although it outperformed on a price basis, its price-to-earnings (P/E) ratio still sits at 15.6x, well below the 35.1x industry average today. Despite having plenty of tailwinds, momentum, and price action behind it, energy transmission stock is still trading at a significant discount that investors can exploit this year.
Before you think about power transfer, you’ll want to hear this.
MarketBeat follows Wall Street’s top research analysts and top performers and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market wipes out… and Energy Transfer wasn’t on the list.
While Energy Transportation currently has a “Moderate Buy” rating among analysts, top-rated analysts think these 5 stocks are better buys.
View the five stocks here
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